Defect Of Record

DEFINITION of 'Defect Of Record'

A public record outlining any encumbrance on a piece of property, such as a lien, mortgage or easement. An encumbrance refers to a claim or restriction on a certain property that can prevent the transfer of the title.

BREAKING DOWN 'Defect Of Record'

Because the defect of record is available to the public, potential homeowners should check to see if the property they are looking has any outstanding debt or legal claims on it. A homeowner may also want to view the defect of record to see if it is clear, especially if the homeowner wants to place the property on the market.

RELATED TERMS
  1. Encumbrance

    A claim against a property by a party that is not the owner. ...
  2. Defective Title

    A piece of property or asset that has a publicly-recorded encumbrance, ...
  3. Abstract Of Title

    A brief history of the titles for a piece of land. The abstract ...
  4. Easement In Gross

    An easement that attaches a particular right to an individual ...
  5. Title Search

    An examination of public records to determine and confirm a property's ...
  6. Absolute Title

    Title to a property that is free of any encumbrances or deficiencies. ...
Related Articles
  1. Economics

    What's an Encumbrance?

    An encumbrance is a claim against a property by another party.
  2. Home & Auto

    Encumbrances And Nonpossessory Interests In Real Property

    Learn about nonpossessory interests and the various forms of encumbrances.
  3. Professionals

    Property Titling And Transfer

    Property Titling And Transfer
  4. Investing Basics

    Investing In Property Tax Liens

    Property tax liens can be a viable investment alternative for experienced investors that are familiar with the real estate market.
  5. Home & Auto

    Tip No.5: Make Sure You Have Clear Title

    Liens and encumbrances on a property can leave you stuck with the past owner's liabilities.
  6. Economics

    How Does a Lien Work?

    A lien gives a creditor the legal right to seize and sell property, then use the proceeds to pay off a borrower’s debt.
  7. Economics

    How Property Rights Affect Economies

    Property rights are laws governments create that enable investors to control, benefit from, and transfer property.
  8. Retirement

    Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.
  9. Home & Auto

    The Complete Guide To Becoming A Landlord: Hiring A Property Manager

    A property manager can perform such duties as marketing your rental property, selecting tenants, maintaining the property, creating budgets and collecting rent. You may consider hiring a property ...
  10. Home & Auto

    Investing In Foreclosures Not A Get-Rich-Quick Venture

    Investing in this kind of real estate takes capital, time and careful planning.
RELATED FAQS
  1. What is the difference between a lien and an encumbrance?

    Understand the legal terms ''lien'' and ''encumbrance,'' and learn the significant distinction between these two essential ... Read Answer >>
  2. What real estate documents need to be recorded?

    Learn how recording documents on real estate transactions, such as deeds, mortgages, easements and taxes, help ensure proper ... Read Answer >>
  3. How can I invest in tax liens?

    Find out about the steps an investor must take to invest in tax liens, along with the potential benefits of doing so. Read Answer >>
  4. How do I avoid a tax lien on my property?

    Find out the best way to prevent the government from placing a lien on your property, including the consequences of having ... Read Answer >>
  5. What criteria does a property need to meet to be considered an 'investment grade' ...

    Learn what it takes for institutional investors to consider a property "investment grade," such as real estate investment ... Read Answer >>
  6. What types of liens are seen as good and which are bad for my credit?

    Understand what a lien is and what types of liens are most common for individuals, and learn which types of liens are good ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center